[steveel]

What I'd do is to write up your plan with pics and drawings and go talk to your building deptarment as Gary suggested. This is the plan I would run by them:

First keep the fiberglass. However, I'd go read up on "air sealing" and first crawl around diligently doing all those things, and then lay the fiberglass back down.

Next, I'd check for blocking foam on the outter top plates and insulation baffles around the perimeter.

Next, sounds like you have batts to the top of the joists. I could be mistaken but I don't think that's enough for you area. You might want to look into sistering the joists or adding some lumber on top of the joists to build up a higher floor surface. Then build a attic hatch cover with a box the height of the new joists, and then blow cellulose across the fiberglass. Don't forget about sealing and insulating any heat ducts up there. After the cellulose, THEN lay your new floor at the new higher level. Too bad about losing some headroom, if you need more insulation you need it.

To help protect stuff from extra hot temps you may want to look into a radiant barrier and an attic fan. Or not. I don't know anything about them, its just on my list to read about.

I agree that molding in the attic indicates a serious problem. I am working on my attic as store space for office files. They better not mold and if they do, so are the rafters. Ick.

Steve El